China and Australia cooperating on fintech

Fintech agreement

The Australian Securities and Investments Commission (ASIC) and the China Securities Regulatory Commission (CSRC) have entered an agreement to promote innovation in financial services in their respective markets.

The Information Sharing Co-operation Agreement provides a framework for information sharing between the CSRC and ASIC on emerging market trends and developments, as well as regulatory developments pertaining to innovation in financial services. According to ASIC, the Agreement will enable the two regulators to keep abreast of fintech activity in each other’s jurisdictions, and help to inform domestic regulatory approaches in the context of a rapidly changing global financial environment.

Signing the agreement, ASIC Chairman Greg Medcraft said, “Co-operation between regulators is essential to realise the benefits of the technological revolution. Understanding new developments and their impact in overseas markets helps us to remain proactive and forward-looking in our domestic approach. This Agreement represents an exciting opportunity for us to learn more about the Chinese fintech sector, which is renowned for its success and dynamism. We also look forward to sharing our insights and experiences on regtech with the CSRC.”

Shiyu Liu, CSRC Chairman said, “In the past few years, the rapid development of fintech has created ample opportunities to introduce new financial services, enhance financial inclusion and fulfil investors’ needs. However, financial market regulators around the globe also face new requirements and challenges posed by market innovations. The Agreement between CSRC and ASIC will provide an effective channel for timely exchange of information on fintech developments and regulatory issues, and enhance regulatory cooperation between the two authorities.”

Accoridng to Reuters, total investment in Chinese fintech ventures, last year, is estimated to have been US$10 billion. Meanwhile, PricewaterhouseCoopers has found that digital payments transacted in China make up almost half the total global volume.